Can America really go broke?

Sometimes liberal thinking leaves me scratching my head.  I’m going to give this contributor the benefit of the doubt and say he’s at least 13 or 14 years-old:

(Democratic Underground) — Let’s say that you have the ability to print your currency using your computer printer, and every merchant accepted your printouts as a valid exchange for goods and services. You need to pick up your dry cleaning? You printout a $20 bill and your cleaners hand over your garments without question. Same would be true for your mortgage, groceries, car note, etc. Your creditors even accept your printouts as payment on your debts.

Given this, how can you ever be broke? Answer, you cannot be broke. The U.S. government is not in debt simply because it can create currency to pay off the debt, and our creditors gladly accept our currency as payment on our debts. You see, the world needs our dollars because the world needs oil, and in order to buy oil, you need dollars, which means that the world needs to stockpile dollars, and that means that the U.S. can print all of the money that it wants without incurring massive hikes in interest rates to attract lenders.

So, why the hue and cry about America being broke? Simple. The elites in this country need to create a defcit and scarcity crisis in order to dissuade the public from voting for increased social spending on things like a universal health care program, better education, better benefits for SS recipients better infrastructure, etc. You cannot argue against the logic nor the need for these programs, but you can argue that you cannot pay for them. Additionally, more social spending means that the public is not as dependent on corporate America for their economic survival. For example, if you have universal healthcare, you don’t have to take a job just for the health benefits. If you have a generous Social Security program, you don’t have to invest in the market.

Perhaps it is our Democrat law makers who think just like lil’ Yavin4 (hmm…maybe 14 years-old is about a decade off) who think that our deficit problems are caused by under taxing rather than overspending — or as Yavin suggests: underprinting.  Perhaps.  But if the above theory were true, why tax anyone at all?  Why doesn’t the government just let us keep our money and simply print what it needs to pay for its programs?

Eventually your currency runs out of buying power rendering it comically worthless ala Zimbabwe.  When your currency has no worth, having it is nearly identical to not having it.  When you have no currency, you’re broke.

Comments

  1. I wonder if this kid ever stopped to consider that we can print money on our home printers. He should try it and see how that works out.

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